When creating your estate plan, one of the most important aspects is determining who to grant the power of attorney. However, it is crucial that you understand the different types of powers of attorneys that exist in the state of Maryland. Follow along to learn them all, and how one of our experienced attorneys at our Montgomery County power of attorney law firm, JD Katz, PC, can help you determine which type works best for your situation.
How does the state of Maryland define power of attorney?
In the state of Maryland, a power of attorney is deemed necessary when you cannot act on your own behalf for any number of reasons. That is, this document grants power to an individual whom you trust and who can act on your behalf should you ever become incapacitated and unable to do so on your own. Also known as an agent, this individual, whether it be a family member, friend, or business entity, is trusted to handle your financial and medical affairs, among others.
What are the different types of powers of attorney in the state of Maryland?
The state of Maryland allows for the following types of powers of attorney:
- A medical power of attorney: This power of attorney gives you the right to appoint a trusted individual to make certain critical medical decisions on your behalf.
- A general power of attorney: This option allows you to grant your agent power of attorney over financial matters that can be for both personal or business transactions.
- A non-durable power of attorney: This power of attorney is only enforceable when it comes to certain established financial transactions. That is, once you become incapacitated and the transaction ends, the power of attorney will be terminated.
- A durable power of attorney: On the other hand, this power of attorney will take effect once you become incapacitated and will stay in effect until you pass away. In other words, this power of attorney gives your agent full control over your assets.
- A special power of attorney: This power of attorney is ideal if you jointly own a business. In this case, your agent is the co-owner of your business and you give them permission to make business-related decisions without your consent, should you ever become unable to make these decisions on your own.
- A springing power of attorney: This power of attorney will take effect when a triggering event occurs. This can either be a non-durable or durable power of attorney, depending on your wishes.
All in all, you should select a power of attorney that best suits your situation. For any additional questions, contact a Montgomery County elder law attorney today.
Contact our experienced Maryland firm
Our firm has experience with matters of estates & elder law, business law, tax law, and litigation. Contact JD Katz, PC today for assistance.